Daily FX Wrap Up

Much has changed for the US Dollar with economic indicators, technical formations, and China becoming a new power house keeping the greenback on edge. From a technical standpoint, the Dollar has been pushed to new lows against many of its most liquid counter parts. Last week’s large move was most apparent from the EUR/USD, GBP/USD and USD/JPY pairs. Late last week a thin market coupled with China stating that they are moving much of the People’s Bank of China’s reserve away from the US Dollar sparked a sell off. In addition, clearing the initial hurdles in the majors may have tipped the scales and provided the market the ability to build momentum in bigger runs. Whether this is the case or not will also be reflected in measures of current market volatility, as well as, implied volatility. The thin liquidity last week was undoubtedly the main trigger for the technical move. Now that the market is back to full capacity, it will remain to be seen whether the market volatility will retain its new levels, with new trends forming after the recent breaks. Today the market did not make any retraction to last week’s move. Currently the EUR/USD is trading at 1.3133, which is almost exactly where it opened. XPRESSTRADE Analyst David Hilgeman